What are credit related regulated activities?

Under the new arrangements, consumer credit activities are known as credit-related regulated activities detailed within the Regulated Activities Order but only some of these may be undertaken by a firm under the Institute’s Consumer Credit (Transitional Arrangements) Regulations as listed below:

Consumer credit;

Credit brokerage;

Debt adjusting;

Debt counselling;

Debt administration;

Entering into a regulated credit agreement as lender;

Providing credit information services; and

Agreeing to carry on a regulated activity so far as relevant to any of the above activities.

It is worth remembering that in considering credit-related regulated activities, a client is a ‘consumer’ who is defined as:

An individual;

A partnership consisting of two or three persons of which at least one partner is an individual; or

An unincorporated body that does not consist entirely of bodies corporate and that is not a partnership.

If the client is not a consumer, the activity is not a credit-related regulated activity.